PROJECT PROFILE ON PLASTER OF PARIS

1. Name of the Product: -

Plaster of Paris

2. NIC Code: -

26945

3. Product Code: -

21304

4. Production capacity: -

Quantity:
Value:

5. Month & year of preparation: -

900 MT / year
Rs.6.18 lakh
February, 2011

6. PREPARED BY: Glass & Ceramic Division

Micro, Small & Medium Enterprises - Development Institute
Ministry of MSME, Govt. of India
Bamunimaidam, Guwahati - 781 021 (Assam)
E-mail: dcdi-guwahati@dcmsme.gov.in
http//www.msmedi-guwahati.gov.in

Phone: 0361- 2550083, 2550073

Fax: 0361-2550052

Introduction of the Product

Plaster of Paris which is calcium sulphate with half molecule of water of
crystallization (CaSo4. H2 o) and hygroscopic characteristics obtained by duly
calcined the raw material i.e. Gypsum (CaSo4 2H2o). It possesses outstanding
property of setting and subsequent hardening when mixed with water.
Plaster of Paris is extensively used in ceramic industry for preparation models and
moulds. It is also used as main raw material in the manufacture of toys & statues,
chalk crayons, gypsum plaster boards, and decorative picture frames besides wide
range of applications in the interior decoration of buildings and other
establishments.
Plant capacity per year: - 1,200 MT
Market & Demand Aspects
As there is growing building construction activity thus requiring large quantities of
Plaster of Paris. Demand for the product is also increasing in making mould &
models. There is also considerable demand for the plaster of Paris arising from a
large number of studies and establishments engaged in making statutes and interior
decoration as well as decorative plaster boards for false ceiling etc, which is in turn
creating a good scope for setting up new units in this line of manufacture.
Raw material: - Gypsum
Manufacturing Process and Source of Technology
Gypsum is the basic raw material required to manufacture Plaster of Paris. These
are cleaned and washed for removal of impurities, dried in sunlight and then
pulverized. Gypsum powders are calcined in a rotary drum calcinatory using light
diesel oil/firewood/coal as fuel. The low pressure burner is sufficient to reach the
calcinations temp. ranges from 1600C to 1800C. The process of calcinations is done
over a period of about 2 hours, so that 1 molecule of water is removed to obtain
the required properties. After cooling the calcined powder is passed through 150
mesh and packed in airtight polythene lined gunny bags.
This technology is locally available and also can be availed from Central Building
Research Institute, Roorke (UP).
Basis of Project Selection:An entrepreneur is said to be an opportunity seeker. For the potential entrepreneur
his/her first task is to identify, explore and then select the business opportunity.
Presumption: The proposed project envisaged to manufacture 3 MT per day.
The unit will run on single shift basis per day and 300 working days per year at
75% capacity utilization.
To achieve production capacity, 15 days trial production is required.
The salary & wages is considered on the basis of prevailing market rate.
The break-even point is calculated on full capacity utilization basis.
2

 Interest on total capital investment has been taken into account @15%.
25% of the project cost is to be considered as margin money.
Cost of machinery & equipment, raw material indicated in the project are to be
revised according to the prevailing market rates at the time of actual
implementation.
Utilities: 10 HP Power
FINANCIAL ASPECTS
Fixed Capital
Land & Building
a) Land: about 1 acre
b) Building:
Office & Stores, etc- 100 sq. mtrs
Work shed -150 Sq. mtrs.

Value (Rs.)
3,00,000=00
1,50,000=00
1,50,000=00
6,00,000=00

Machinery and Equipment

Sl.No.
Description
Qty.
Value (Rs.)
1
Attribution disc. Pulverisor 1/2 MT/hr with 7 HP 1
2,50,000=00
motor & accessories
2
Rotary cylindrical drum calcinor (fabricated) size 1
3,50,000=00
2.5 mtr. (Length) x 2 mtr. (dia), capacity 4 MT /
charge mounted on a fuel fired roasting oven
made of common bricks provided with firing
grates on either side of the oven and an exhaust
chimney therewith and complete with a vapour
outlet, thermometer, motor, gear and accessories.
3
Burners & other misc. equipments etc.
LS
1,00,000=00
4
Office equipment, furniture and fixtures
LS
1,00,000=00
Total
8,00,000=00
Pre-operative expenses
50,000=00
Total Fixed Capital: (6,00,000 + 8,00,000 + 50,000)
14,50,000=00
Working capital (per month):
Salary & Wages
Personnel
Manager cum Supervisor
Chemist
Clerk cum Typist / Store Keeper
Skilled Workers
Unskilled Workers
Peon / Watchman

Nos.
1
1
1
2
4
1
3

Salary (Rs)
7500
4000
3000
3000
2000
2000

Total (Rs)
7,500=00
4,000=00
3,000=00
6,000=00
8,000=00
2,000=00

+ 15% Perquisites
Raw Material
Particulars
Gypsum
Woven bags for packing

Qty.
100 MT
LS

5,000=00
35,500=00
Rate (Rs.) / MT
2,000/-

Utilities:

Value (Rs.)
2,00,000=00
1,00,000=00
3,00,000=00
15,000=00

Other misc. recurring expenses

Postage & Stationery
Repair & Maintenance
Transport charges
Misc. expenditure

500=00
5,000=00
5,000=00
5,000=00
15,500=00

Total Working Capital (per month):

Raw materials
Salary & Wages
Utilities
Other misc. recurring expenses

3,00,000=00
35,500=00
15,000=00
15,500=00
3,66,000=00
10,98,000=00

Working Capital (for 3 months)

Total Capital Investment:
Fixed Capital
Working Capital (for 3 months)

14,50,000=00
10,98,000=00
25,48,000=00

FINANCIAL ANALYSIS
Cost of Production (per year)
Total recurring cost per year
Depreciation on building @5%
Depreciation on m/c & equipment @10%
Interest on total Investment @15%
Annual Turnover
Item
Plaster of Paris

Qty.
900 MT

Net Profit (per year)

43,92,000=00
15,000=00
80,000=00
3,82,000=00
48,69,000=00
Rate (Rs.)
6,500/- MT

Value (Rs.)
58,50,000=00
9,81,000=00

Profit ratio on Sales

Rate of return
Break Even Analysis (B.E.P)

16.76%
38.50%

(a) Fixed Cost

Depreciation
Interest
40% of salary & wages
40% of other contingent expenses
(b) Net profit per year
B.E.P = 42.40%

95,000=00
3,82,000=00
1,70,400=00
74,400=00
7,21,800=00
9,81,000=00

List of Suppliers Address

Plant & Machineries
1. M/s. Amic Industries, 10, BT Road, Kolkata-36
2. M/s. Durgapur Engineering Co. Ltd. Marshal House, 33/1, Netaji Subhas Road,
Kolkata-700001
3. M/s. Wesman Engineers Co. (P) Ltd. 1/2, Allerby Road, Kolkata-20
4. M/s. Continental Thermal Engineers, 806, II Stage, 4th Main, A Block,
Rajajinagar, Bangalore-10
Raw Materials
1. M/s. Mysore Minerals, 39, MG Road, Bangalore-1
2. M/s. Shri Venkateswara Products, Vadakku Venganallur, Opp. Raju's College,
3. M/s. Andhra Pradesh Mining Corporation, 6-3-672, Punjagutta, Hyderabad-82
4. M/s. Madras Mineral Suppliers No.2/10, Toovipuram,Tuticorin-3 (Tamil Nadu)
5, Anderson, Habibulla Avenue, Chennai-4
6. Gypsum: Availability in the neighboring country (Bhutan)
Resource Centre of Technology: Manufacture of Plaster of Paris does not require
very high technology. This technology can be availed from MSME-DI, Guwahati
at free of cost.
List of units set up by using this project profile: Nil